We keep listening from traders statements like “that is a trap” or “the market is trying to trap” or “the operator is trying to trick retailers”. In my opinion, there is nothing like that in the market.
There is only one truth in the market, and that is Price.
People do believe that there are market makers and operators trying to trap retail traders. I don’t blame them for having that thought. It certainly feels like that way when market goes against you a few times and stops you out of your trade before resuming back in your original anticipated direction.
As a trader we have to accept the nature of market movement, it goes zig-zag, up-and-down. Doesn’t go straight up or down for a long sustained time.
You agree with the whole concept of Trapping because of one of these two reasons or both:
Either, you have been a victim of that ‘stopping out and resume the move’ (SORTM) phenomenon, or/and
you don’t have sturdy trade plan at the initiation of the trade.
Listen, market moves in that haphazard manner, independent of what you or I think. Either you are on the right side of the market direction or you are on the opposite side. That’s what matters, that’s it. Keep a trading plan, accept loss, and keep position size small. That’s what is under your control, so do this responsibly; and, you won’t care about such things as Trapping.
Confidence in the trade comes when there is a rational reason and study behind a trade. You won’t be bothered with these terms like Trapping when you have a solid plan, rational entry trigger, and solid sturdy risk management.
Solution to all this:
1. If your stops get triggered before price resumes in your original direction, and this happens often, may be the reason is that you put your stops at obvious levels as everyone else is doing. Market does move from one supply zone/demand zone to another, thus forming that zig-zag movement. In this case, lets put our SL little distant from obvious zones and keep position size accordingly.
2. Have a solid Trading plan. Solid trading plan includes things like; a rational entry trigger, a logical SL level, a realistic target level, a manageable position size, and specified criterias when you will reasses your postion.
These two solutions will keep you confident and sturdy while in your trade, will keep you from being emotional from zig-zag moves, and obviously, will keep you from thinking about things like ‘market is trying to trap you’.
